EdTech: Education Technology, Illuminating the underwritten

India is Blessed with a demographic dividend yet it can soon be a demographic encumbrance if there aren’t enough opportunities for the youth.Employability and skillset are cemented from a young age to house a strong foundation through education.The market size of the Indian education industry was estimated to be around INR 3.83 trillion (USD 62.34 billion) in the financial year 2013-14 with higher education accounting for almost 60% of the market.Nexensus probes how new age EdTech startups are trying to fill the gaps-

Nexensus: edu-startups Edtech startups

Growth Opportunities

India has more than 200 million school-going children (one-third of the total population).While two-thirds of rural children are enrolled in government schools and the remaining in private schools, the dropout rate is also high. Catering to the growing numbers is only 1.4 million schools, 700 universities, and 35000 Higher education institutes.

With the second largest and youngest workforce in the world having a median age of 25 years. An average Indian family spends 10-30% of its disposable income on their child’s learning, while only 0.01 percent of the population is skilled or qualifies as employable.There is an expected to be a skilled labour shortage of 44 million in US,China, Russia, Japan and UK by 2020. On the other hand, India is expected to have a surplus of 47 Million in the duration.

The Government of India has therefore given an impetus to quality and innovation in education through Public Private Partnership (PPP) model facilitating greater Foreign Direct Investments (100%) in education, aimed at making the budding populace a future asset after completing studies and be absorbed in the working ecosystem.

Private players have also invested over $9.86 billion (Rs. 67,496 crores) in Edtech startups since 2006,one-third of the amount was raised in funding in 2015 alone.Whereas between 2010 to 2015 ,USA has invested $2.3 Billion, while China has invested $1.3 Billion in 2015 alone in EdTech.

Edtech startups: Established Players

Some of the seasoned players where private equity players have parked their portfolios continue to be :

StartupCity FocusInvestors
Children Education & Information platform
SIDBI Venture Capital Limited, YourNest Angel Fund
Free Interactive education platform
Blume Ventures, Sachin Bansal, Vijay Shekhar Sharma, Binny Bansal,  Kunal Shah, Sandeep Tandon, Ashish Tulsian
Edutainment platform
Michael and Susan Dell Foundation
TransTutors /AskIITiansNew Delhi
Online Education & Tutoring portals
500 Startups
EduAce Services
Education Workshops & mentoring programs
MoMagic Technologies
Educational Gamification & Simulation platform
Inventus Capital Partners, HR Fund
Imarticus Learning
Financial Services & Analytics Education Institute
Blinc Advisors, Amit Nanavati, Tashwinder Singh, Taranjit Jaswal, Amit Khanna
New Delhi
College Education Portal

Sneak Peak: Entrant Startups

Some Seed funded blooming startups are

New DelhiEducation Focused Financing Platform
Stanford Angels & Entrepreneurs, Harvard Angels
New Delhi
3D Printing Solutions for workshops and EdtechNewbie Promoters
New Delhi
Education based online portal
EVC Ventures
Mobile Education Platform
Plastic Water Labs
BengaluruIntroducing virtual reality (VR) for spatial thinking and comprehension; learning by both observing and interacting with the subject matter.
Baskar Ethirajan and Sajesh Nair
Personalised online tutoring platform for school students 
Vamsi Krishna, Saurabh Saxena, Pulkit Jain, and Anand Prakash
AvagmanBengaluruAvagmah Technology Platform (ATP) provides web and mobile application-based solutions for delivery of courses by universitiesAtul Nishar, Kris Gopalakrishnan, Neeraj Bhargava
Magic Crate
Children Education Platform
TV Mohandas Pai, Aarin Capital
Career Planning and Education Advisory Platform
GBIM Technologies Pvt Ltd
Provides elearning infrastructure, digital courses to university students
 Shantanu Rooj, Ravi Rangan and Anil Bhat
Entrance exam preparation startup for courses to prepare for state board, medical, and IIT JEE exams
Hemanth Goleti and Zishaan Hayath
Plancees EduSolutions
Competitive exam prep startup
Vivek Gupta,Mirik Gogri and Nitesh Salvi
MumbaiEducation platform for working professionals, with courses on entrepreneurship, data analytics, digital marketing, and product management that are delivered in collaboration with domain experts
Ronnie Screwvala
Language education platform : app Hello English enables Indians to learn English ,Spanish, Mandarin, Portuguese from 15 vernacular languages
Pranshu Bhandari 
FastudentNoidaEducation eCommerce platformKanwaljit Singh, Ajay Lakhotia, Pavan Ongole, Ashish Gupta

Food for Thought

Everyone can pause and think for a moment. What is education? How did it add value to the reader’s life?Most of all, Is it only a Business venture or more like a long term value added investment like a SIP for the future with exponential returns.There a dire gap between quality education in the rural and urban populace, though how is it still relevant to a PE firm/VC or an investment manager ?

The success of Edtech sector so far is codependent on Internet services. While frontier markets like Srilanka, Myanmar, Cambodia, Laos and emerging markets like India,Brazil,China have access to the internet but not access face to face education readily, Edtech is a promising solution. Is there a time cost benefit there or is it a more egalitarian issue that one cannot let emotions take over the rationale while taking a business decision.


Contact us for more information on Edtech startups

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